Wyevale last night said talks that could have led to a takeover had ended.

Discussions with Gnome Acquisitions - a bid vehicle set up by private equity firm Cinven - collapsed after the group decided it was not willing to pay at least £325 million for the 114-strong chain.

This price was crucial as it would have gained the backing of Wyevale's biggest investor, Laxey Partners.

This month, Cinven said it was interested in making a bid that would have the support of Laxey Partners if it was worth at least 580p a share and came by December 2.

Hereford-based Wyevale said that it pulled out of talks after Cinven revealed it could not pay this amount. In its own statement, Cinven confirmed this and said it did not wish to proceed with an offer.

It said Gnome Acquisitions reserved the right to make or take part in an offer during the next six months.